Bombay HC Pulls Up NCLT Mumbai Registry Over Scrutiny Lapse In Personal Guarantor Insolvency Plea

The Bombay High Court on Tuesday pulled up the Mumbai Registry of the National Company Law Tribunal (NCLT) for failing to follow mandatory procedures while scrutinising a personal guarantor insolvency petition under the Insolvency and Bankruptcy Code. A division bench of Justices Manish Pitale and Shreeram V. Shirsat held that the Registry did not comply with Rule 28 of the NCLT Rules and prior directions issued by the High Court in Bank of Baroda vs. Union of India. “It is obvious that the...

Limitation Act Not Applicable To Homebuyer Complaints Before RERA: Chhattisgarh High Court

The High Court of Chhattisgarh has recently held that complaints filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, before the Real Estate Regulatory Authority (RERA) or its Adjudicating Officer are not subject to the three-year limitation period prescribed under Article 137 of the Limitation Act, 1963. Setting aside a tribunal's suo motu order that had dismissed a homebuyer, Nidhi Sao's complaint as time-barred, the court remanded the matter for fresh...

Section 101 IBC Moratorium Temporary, Creditors Free To Recover After Expiry: Delhi High Court

The Delhi High Court on 13 April held that the moratorium under Section 101 of the Insolvency and Bankruptcy Code, 2016 (IBC) in personal insolvency is temporary and time-bound, and once it ceases, creditors regain the right to pursue recovery and execution proceedings. Justice Harish Vaidyanathan Shankar made this observation while allowing continuation of execution proceedings in Vistra ITCL (India) Ltd. v. Pranav Ansal & Anr., where the decree holder sought to recover an arbitral award...

Arbitral Award Executable Against SPV Members Not Party To Proceedings: Allahabad High Court

The Allahabad High Court on 9 April held that members of a special purpose vehicle (SPV) fall within the expression “persons claiming under them” under Section 35 of the Arbitration and Conciliation Act, 1996, and allowed arbitral awards to be executed against them even if they were not parties to the arbitration proceedings. Justice Pankaj Bhatia delivered the ruling while dismissing petitions challenging execution proceedings initiated by Adani Enterprises Ltd. against shareholders of an SPV...

Reconstructed Record Gaps No Ground To Set Aside Award: Tripura High Court

The Tripura High Court on 1 April, held that a Court hearing a challenge to an arbitral award cannot rely on gaps in a reconstructed record to question the Arbitrator's findings or the existence of material that was before the Arbitrator at the time of adjudication. A Bench comprising Chief Justice M.S. Ramachandra Rao and Justice Bishawajit Palit set aside the Commercial Court's order, and upheld the arbitral award. They held: “...merely because they were not found in the reconstructed...

Failure To Deposit EPF Dues On Time Is A Penal Offence, Later Payment Irrelevant: Orissa High Court

The Orissa High Court has held that subsequent payment of employees' provident fund dues does not extinguish criminal liability for prior default, and such payment cannot be a ground to quash criminal proceedings. A Single-Judge Bench of Dr Justice Sanjeeb K Panigrahi, by order dated 13 March, refused to quash criminal proceedings against the former director of Cosboard Industries Pvt. Ltd. He held: “The offence committed by the petitioner is grave endangering the Right to pension and...

Sports Association Election Disputes Under Rajasthan Sports Act, 2005, Must Go Through Arbitration: Rajasthan HC

The Rajasthan High Court has recently held that disputes touching the constitution, management, or election of a sports association are required to be resolved through the statutory mechanism of conciliation and arbitration under the Rajasthan Sports (Registration, Recognition and Regulation of Association) Act, 2005, and not by invoking the writ jurisdiction of the court. A Division Bench of Justice Inderjeet Singh and Justice Ashok Kumar Jain allowed a special appeal filed by the Rajasthan...

RERA Can Probe Developers' Financial Affairs; Madras High Court Remands Aavisa Township Dispute To TNRERA

The Madras High Court has recently held that authorities under the Real Estate (Regulation and Development) Act, 2016 can examine the “affairs” of promoters (developers), including financial dealings, while dealing with complaints by homebuyers. It set aside orders of TNRERA and TNREAT and remanded the Aavisa Golf Township dispute for fresh consideration, including whether the Kotak Mahindra entities qualify as “promoters” under the Act. A Division Bench of Justice R. Suresh Kumar and Justice...

Stamp Duty On Amalgamation Cannot Be Based on Goodwill, Share Premium Account Entries: Bombay High Court

The Bombay High Court has held that while an amalgamation order is chargeable to stamp duty as a “conveyance”, stamp authorities cannot levy duty on such an order by treating accounting entries such as goodwill, share premium, or profit and loss figures as consideration in the absence of any real issuance of shares or payment of money. Holding that amounts reflected in accounts can be considered for stamp duty only if they are clearly linked to actual issuance of shares or real payment of...

CESTAT Allows CENVAT Credit On Insurance, Forex Hedging, Employee Training For National Engineering Industries

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has allowed the appeal filed by National Engineering Industries Ltd., setting aside the denial of CENVAT credit on insurance services, forex hedging consultancy, and employee training and travel-related services, holding that these were used in relation to its manufacturing business.The case was decided by Judicial Member Dr. Rachna Gupta, who found that the services in question were connected, directly or indirectly,...

Calcutta HC Refuses To Stay Single Judge Order In Chrestien Mica Liquidation Case Over Fraud Allegations

The Calcutta High Court has refused to stay a single judge's order that stepped in to undo alleged fraudulent dealings in the decades-old liquidation of Chrestien Mica Industries Ltd., holding that the High Court exercising company jurisdiction retains authority once winding-up proceedings reach an “irreversible stage." A division bench of Justice Sabyasachi Bhattacharyya and Justice Supratim Bhattacharya said the transfer of such cases to the National Company Law Tribunal (NCLT) is permissible...

No Damages Without Proof Of Loss: Delhi High Court Partly Sets Aside Arbitral Award Against DJB

The Delhi High Court on Monday partly set aside an arbitral award in favour of a contractor against the Delhi Jal Board (DJB), holding that damages cannot be granted on the basis of projected turnover without proof of actual loss. Justice Avneesh Jhingan held that "the award of damages in absence of evidence on record of actual loss suffered or a finding recorded that the loss suffered cannot be proved is in violation of Sections 73 and 74 of the Contract Act and against public policy. The...